Saturday, December 6, 2008

Work for free? Yeah, Right!

I just finished reading David Hobby’s latest Strobist entry of Four Reasons to consider to Consider Working for Free. In fact, I read it twice just to make sure that I didn’t misunderstand something. Although, I have only been shooting professionally for the last 7 years, I have had a long career working with financial and consulting clients. We always had the adage, if you do something for nothing; people perceive that is exactly what it is worth.

While I don't agree with all of David's comments, there are times when it is entirely appropriate to strategically adjust pricing.

As you know if you have seen the Competitive Image website or read our limited blog entries, we shoot endurance sports and work with teams, events and magazines. I shoot on a regular basis for Inside Triathlon and Triathlete Magazines. I have been fortunate to be at high profile races with World-Class athletes. In this case I will share any of my images of the Pro Athletes for use on their websites. I always joke with them that I will not do it for less than free. Is this going against what I said? No, strategically this is the fastest way to get my images in from of the athlete’s sponsors, and is somewhat of an endorsement of my work by the athlete. The strategy has led to my images being used by: Toyota; Wheaties; General Nutrition; Litespeed and others. In addition, I only give up the right for the athlete to use the image on their website, everything else has to go through me.

It is always easier to maintain an existing client than get a new one. With that in mind, if I want to try something new, I will generally try it with an existing client. I will discuss it with the client and get their approval to move ahead. If it is something that is untested, I will not charge them for it. A great example of this is the finish line shot for the TC 1 Mile, which was written about in our July 13th blog. There were hopes that it would work, but only nominal expectations by our client. If it didn’t work, there was nothing negative with our client and if it did work – well only positive things would happen. No risk, high reward - sounds good to me. Did I charge extra for this? No. But it did give me full access and control. In addition, it gave me something to show off to potential clients.

Many of the events that we shoot are put on by non-profit organizations. Although many of them start with that concept when trying to negotiate, I have spent many years in my consulting practice working with non-profits (see Making Critical Decisions - A Practical Guide for Non-Profit Managers). Just because these organizations have a social / community agenda instead of a profit motive, doesn’t mean that you have to give your services away. Keep in mind; they are also in it for the money, because without the margin, there is no mission. They are running businesses just like you and I are.

With new clients, I will typically use a reduced fee for the first year, moving up to my standard rates over the subsequent year or two. This is my investment in the relationship. This is always agreed to in advance, since if you don’t tell them they are getting a good deal, they will never know.

A couple years ago, the race director of a ski race called and started the conversation by saying: Paul, frankly I just don’t put much value in having good photographs. I responded, fortunately that will not have an impact on what I charge. Well, actually it did, if they had hired me to shoot, I would not have decreased the initial fee because there would have been no long-term benefit to do so.

Will I ever work for free? Sure. Last spring two of my favorite people called to invite me to lunch, both were associated with one of my biggest clients and both were working on a major Twin Cities annual medical fundraiser. They asked if I would donate my services for the event. They did not ask if I would work for free, but if I would be a benefactor. I shoot the event, was listed as a middle level sponsor and had a great time.

All this being said, pricing and strategy go hand in hand, but if you tell someone you will shoot for FREE, it is very hard to move them to a fee-paying mode.

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